First Home Owner's Grant NSW

Properties by the nsw harbour

It may seem that buying a home in the current real estate market is but a distant dream. Don’t lose hope, because the Australian government has set up home owner grants for first time buyers to help them achieve those dreams.

The First Home Owner's Grant (FHOG) was launched in 2000. It offers Aussies a one-time lump sum of money for first time home owners considering buying a new or a heavily renovated home. 

This grant was introduced to slightly offset the effect of the Goods and Service Tax (GST) on buying or building a home. The grant is only for home buyers who plan to live in the residential property they buy or build. 

If you’re from NSW and thinking about applying for the First Home Owner Grant then you’ve come to the right place.

How much is the first home owner's grant in NSW?

In New South Wales, first time home buyers who buy a newly constructed house valued at less than $600,000 may receive a $10,000 grant. If you are building a home, then the limit increases to $750,000. 

That $10,000 may change in the future as the NSW sets its annual budget. In the past some other states have seen a decrease in the grant amount, but at the moment the grant amount has not changed for NSW.

New home owners get paid the grant once the ownership transaction is complete. If you are building your own property, the grant typically gets paid when building work commences—usually when the home’s foundations have been built. 

In some cases you can use the grant as part of your deposit, but keep in mind you don’t receive the money until the sales transaction is complete. Reach out to your home loan lender to check their policies. Unfortunately, you cannot buy land with the FHOG.

Who is eligible for the first home owner's grant in NSW?

To qualify for the FHOG, you or at least one person you are buying with must be an Aussie citizen or permanent resident of at least 18 years old. Only those who have never previously owned property in Australia or received the FHOG may apply.

Other eligibility requirements are:

  • At least one applicant will reside in the property for at least six continuous months with the 12 month completion of the transaction as their main place of residency. (Australian Defence Force members and NSW electoral roll are exempt from this rule). 
  • Must be an individual not a company or trust
  • Spouse/partner must have never owned residential property or received the grant before.
  • Complete the correct documentation.

How to apply for the first home owner's grant in NSW?

Applying for the grant is pretty straightforward.

  • You’ll need to download and complete the First Home Owner Grant Application PDF from the official Service NSW site.
  • Gather proof of identification, a copy of the contract for the sale (dated and signed by the seller) and additional supporting documents.
  • Lodge the form with your mortgage lender or Revenue NSW.

You’ll be paid the grant either on the date of the settlement (if you lodged the application prior) or within 15 business days of applying.

What other grants or schemes are available in NSW?

In addition to the FHOG, first time home buyers can also apply for the First Home Buyers Assistance Scheme. Unlike the FHOG, this grant applies to buying an existing home, buying a new home and buying vacant land you want to build on. 

Depending on the type of home you plan on buying, you may receive an exemption or a concessional rate towards the stamp duty (transfer duty) fees. NSW’s First Buyer Assistance Scheme allows buyers with homes valued less than $650,000 to be exempt from transfer duty. If it’s more than that amount you may be able to receive a concessional rate based on the value of your home.

There is also the New Home Guarantee which was formerly known as the First Home Loan Deposit Scheme. Every year the New Home Guarantee gives federal government support to buy a home to the first 10,000 home buyers that apply. Through this scheme new home owners can qualify for home loans as little as 5% LVR without paying for LMI. However, this scheme is highly in-demand and has several requirements to qualify.

If you’re a single parent you may qualify for the Family Home Guarantee. It allows 2,500 single parents per year to qualify for 2% deposits without having to pay LMI. This recently introduced scheme is for previous owner-occupiers and new home buyers.

Finally, there is the First Home Super Saver Scheme which allows first time home buyers to use their super to save up for a deposit. Through this scheme, you can sacrifice up to $15,000 of your salary per year towards the scheme. By doing this you receive a discounted tax rate of 15% and your funds can earn a specific rate of return. When you are ready to buy your house you can withdraw the money (and the earnings) to use for your deposit. Generally this scheme is more tax-effective than saving through a traditional bank account, but it tends to be one of the less popular scheme options.

How do I apply for the first home owners grant in other states or territories?

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